Cycle Lows

Definition ∞ Cycle lows represent the lowest price points an asset reaches within a defined market cycle. These points signify the nadir of a particular market downturn or bearish phase for a digital asset, often preceding a period of recovery or accumulation. Identifying cycle lows is crucial for technical analysis, as they can act as significant support levels and indicators for potential market reversals. Such price levels are typically accompanied by capitulation events, where selling pressure reaches its peak before diminishing.
Context ∞ In crypto news, discussions around cycle lows often involve analyzing historical price data and on-chain metrics to determine if a market has reached its bottom. A key debate revolves around whether current price action indicates a true cycle low or merely a temporary price floor. Future developments in market analysis tools aim to provide more accurate predictions and real-time identification of these critical market turning points.